TORONTO – Canadians will have another way to watch movies this fall when popular California-based Netflix Inc. (Nasdaq:NFLX) launches its streaming video services for the first time outside the United States.
The company, famous for revolutionizing the way Americans rent DVDs by sending them through the mail, announced Monday that it will start offering movies and television shows in Canada for a flat-rate monthly fee.
However, Netflix says its services will not include shipping DVDs through the mail like it does in the U.S.
Instead, the company hopes to build its Canadian presence by streaming movies through the Internet to computers and other devices like the Xbox 360, iPads and the PlayStation 3.
“Netflix members in the U.S. are showing us that streaming is more and more popular and a greater convenience,” said Netflix spokesman Steve Swasey in a phone interview.
The company didn’t say how much it will charge for the service, though it offers tiered packages in the U.S. that allow more programming options for a higher price.
Competition has been heating up in the past few years for Canadians’ entertainment dollars, particularly in the home entertainment market.
Similar on-demand Internet online programming services are being rolled out by several Canadian companies, particularly Quebecor’s Videotron (TSX:QBR.B) and Rogers Communications (TSX:RCI.B).
The cable operators have built elaborate on-demand services on TVs , and to a lesser extent online, that aim to bring new release movies to homes on the same day as video stores, while offering an extensive back catalogue of television and movies.
Earlier this month, Sony Canada launched a new section of its PlayStation store that allows users to rent or buy movies through the PlayStation 3, similar to how Apple’s iTunes store sells movies and TV shows.
Zip.ca operates a mail-order DVD service similar to Netflix in the U.S., and has promised to launch its own streaming video services in the near future.
The growing number of options has put the pinch on more traditional DVD retailers like Blockbuster Video and Rogers, which a few years ago rebranded its DVD and video games stores as Rogers Plus to accommodate a stronger focus on mobile phone products and cable services.
Netflix says Canada will be the first international market for its Internet subscription service. The company had planned to test the water in the U.K., but backed out before the service launched.
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